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should we multiply the fixed volume variance with the standard absorption rate?
I don’t get the answer when I multiply however the text says multiply with the standard fixed absorption rate .The volume variance is the difference between the actual and budgeted production, multiplied by the standard fixed overhead cost per unit (not per hour).
I suggest that you watch my free lectures on this – the lectures are a complete free course and cover everything needed to be able to pass Paper F2 well.
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